TAXPAYERS face paying millions of pounds in bonuses to fat cat bosses at Royal Bank of Scotland, it emerged last night.

A £4million bonus is set to be paid to John Hourican, chief executive of the firm’s ­troubled investment division, which is rumoured to be ready to axe up to 10,000 jobs.

Stephen Hester, chief executive of RBS, which was bailed out by the taxpayer, could be awarded as much as £7million in pay and perks.

Critics say the payouts “rewarded failure” and accused the Prime Minister of failing to crack down on excessive boardroom pay.

David Cameron, who has vowed to give shareholders more power to curb unjustified rewards, insisted he was ­committed to ensuring top salaries were linked to success.

But last night he said some decisions over bonuses were taken before he became PM, adding: “We have taken tough action. The overall level of bonuses has come right down but we are looking more broadly at top pay to make sure it is linked to success.”

Taxpayers took an 83 per cent stake in RBS to save it during the height of the banking crisis

Taxpayers took an 83 per cent stake in RBS to save it during the height of the banking crisis.

It has emerged that in 2009, as part of a three-year incentive package, Mr Hourican, the bank’s global banking and markets boss, was awarded 21 million shares plus another 7.4 million options to buy stock.

The total would be worth some £4.4million on the market today, although its value has halved over the past 12 months. The deal also means it would cost him more to buy the shares than the stock is worth now.

The PM’s official spokesman declined to comment on individuals’ pay but suggested UK Financial Investments, which represents the Government’s holding in bailed-out banks, would urge restraint.

But Labour MP Simon Danczuk said: “If the Prime ­Minister is serious about empowering shareholders, he should lead by ­example and take action to ensure unfair pay awards are not allowed.” David Fleming, of the Unite union which fears up to 10,000 jobs could go in a restructuring of Mr Hourican’s division, said: “The bonus culture at the top of the bank, which rewards the fat cats at the expense of ordinary workers and families, must be abolished.”

RBS said Mr ­Hourican’s final award would depend on his performance against targets set in 2009. UKFI and other shareholders would be consulted. He added that no decision had been taken on his or Mr Hester’s package. Announcements are likely next month.

Bonuses at Mr ­Hourican’s division fell from £1.3billion in 2009 to £950million last year and are expected to continue falling.